NABL Member Advisory: Extension of Temporary Changes to Section 265 of the IRC
Feb 4, 2010
On February 3, 2010, the National Association of Bond Lawyers (NABL) released a Member Advisory, Extending ARRA Relief for Debt Issuance of Small Government Entities and 501(c)(3) Organizations, which evaluates the case for extending certain temporary changes made to Section 265 of the Internal Revenue Code in the American Recovery and Reinvestment Act of 2009. NABL believes that these provisions, which increased the $10 million "Bank Qualified" (BQ) limit to $30 million and permitted banks to hold a 2% de minimis amount of tax-exempt bonds outside the general proportionate interest expense disallowance rule, have been highly beneficial to local governmental units and to nonprofits.
The Advisory was prepared in response to requests from NABL members and other municipal securities market participants, and is part of ongoing outreach regarding the ARRA and related issues.